Afair thats certainly not true for most european countries. We dont allow "shrinkwrap" contracts to be set up ("you agree to a license agreement by removing shrinkwrap"), and we usually need the buyer to be aware what he buys at the point of purchase (so the contract must be readable/established there).
As thats not the case - we own the software. (With software downloads its different, there we are made to "sign" an agreement prior to purchase. Just as US users.)
The content industry lobbied in another backdoor illegality clause though - and that is, that you are only allowed to make copies of your own games "if you are not breaking copy protection". Which sounds so much like a scheme to circumvent standing law on part of the industry - because it is. Almost no commercial software gets delivered today without some form of DRM on it (shake fist at TX), at which point "circumventing it" becomes illegal.
But. No one can prove that you are doing it - so there are no litigation cases there.
Furthermore, we in the west live in juristictions, where everyone has the right of a fair trial. So there is a concept of - when too many people are doing something, and its considered a "minor offense" (not part of criminal law, comparatively low punitive sentences), courts tent to dismiss those cases and raise the bar of entry to remain functional (Think 1000s of copyright protection infringement cases - with Nintendo having to prove without a reasonable doubt ("It whaz my cat who dunnit!"), that you where the one, that... - that would clock up the juditial system). So in fact "copyprotection infringement cases" are not litigated. Because of their number, because of low chances to prove who did it, because of the low priority nature of that crime in the courts eye.
Its even the same with "illegal downloads" which has become a thing in most european legislatures as well - where, when no one stores the IPs... Illegal on paper, but cant be litigated.
With torrents it was different, because you were distributing copies as well (which is a more severe crime), and broadcasting your IP, so a grey industry developed, where unreputable laywers would load up torrents (not download), connect to peers, gather their IP addresses, go to ISPs, demand the Name and address of the account holder, and then send out "give us money, sign this oath - or we will sue you" extortion letters to the account holders. They then went to the content industry and made "we will make you money" deals with them - to be able to go after their "audiences" in their name.
For the most part the content industry acknowledges, that suing thousands of their users - isnt a great idea, because the PR fallout would be tremendous. So they create "value add" (free monthly games, online play, ...) - to then take away from you (BANNED), if they catch you. And thats it. Its still a good way to do it though - if you look at the PS Online premium model.
You get "free" games now - if you stay on the most current firmware (harder to pirate), with easy downloads and good download speed, while paying a "fee" thats low, but still makes some economical sense to us and our partners - you'll loose access to those games, and future releases - once we ban you.
Thats actually a pretty great piracy mitigation strategy. (Lower piracy numbers over the long term. Which means those people might pay more for current games - so the industry can be happy, even if they might not make big bucks on the "free" titles.)
Of course Nintendo hasn't understood that and sees it as devaluing its assets.
That all said. Piracy still is illegal in most western countries. Copying games still is illegal in most western countries. Downloading pirated games is still illegal in most western countries. (Fun story - btw. the content industry just recently lobbied this in in Europe, so now - if "a reasonably educated person (legal speak for IQ of at least 80) can see" that an online portal is not "legit", downloading from there becomes an illegal act - which is so far removed from our actual legal principal ("in dubio pro reo", burden of proof an the side of the accuser) - that this must have cost tremendous bribes eh.. lobbying efforts, to get established.)
Oh and US citizens are effed, as we've found out, because they have no consumer protection rights left anymore. As we've found out through extensive discussions.
(They can be pressed into contracts they dont even have to be able to read...) But then they can sue companies for millions in return in big collective lawsuits, if they dont write out EVERY SINGLE RIGHT the user might have had, in their product contracts. Which mostly makes lawyers money. (Self propetuating scheme.
) Europeans usually cant sue "collectively".
Which is an issue with internet economy cases (Facebook, google, ...) - as we have ZERO protection against data abuse their, thanks to our US megacorp friends. (Shortened too much as an argument, but in essence - true.)